Based
on an insurance company

Nov 15th, 2015

Sigchi4life

Category:

Mathematics

Price: $5 USD

Question description

Based
on an insurance company's past data, each year an average of 1/90
policy holders make a claim of $250, 1/250 policy holders make a claim
of $15,000, and 1/450 make a claim of $24,000. 7. What
would the insurance company have to charge per policy-holder to break
even? (i.e., what the premium would have to be in order to have an
expected profit of zero.)